asked
My husband and I sold a piece of property (land) about 5 years ago. We received a down payment and were carrying the rest. When I filed taxes that year, we showed the full amount of the sale instead of showing it as an installment sale. The buyer defaulted, made some interest payments, but never paid any additional principal. We foreclosed and repossessed the property. The value has declined since the time of the sale, and the current value is very close to how much the buyer still owed. I recently saw a tax preparer at H&R Block, who told me that since we didn't originally show it as an installment sale, and there is really no gain or loss to speak of, that we do not have to include this information with our taxes. This doesn't make sense to me, so I am looking for a second opinion on this, and assuming I should include this information in my return, I need to know how to go about it.
February 15th, 2023
One of my LLCs (Ecos) bought entitled land for $1,150,000 in 2006. I own 50% of Ecos. Due to market issues, the land was sold to JV azalea LLC (in which I own 75%) for $400,000 in 2017. The land was later sold for $350,000. My accountant says I can't claim the loss from the initial sale to JV azalea LLC because I own both LLCs. Is this true, and if so, what solutions are there?
April 10th, 2023
Can I deduct the costs of fixing up an inherited house (repairs, floor refinishing, etc.) and the costs of selling the house (commission, NY stamp tax, etc.) on my income tax?
September 17th, 2023
My grandmother moved closer to family and put her house in her 3 sons' names for them to split the money if it were ever sold. The house has now sold, and they want to put the money in an account for my grandmother's potential medical care or nursing assistance. Will they have to pay capital gains on their shares of the money, and is there a way to secure the money strictly for my grandmother without paying capital gains?
June 20th, 2023
A family member died on May 29, 2017, and her trust was changed from revocable to irrevocable. As an heir, I have not received any inheritance as of March 15, 2018, but I am told I will receive 1/3 of the funds, much of which is in US stocks. Do I owe capital gains taxes on dividends distributed between the death and December 31, or does the trust pay the tax burden? Additionally, should I submit my taxes for 2017 without any reference to this potential 2017 or 2018 inheritance?
May 13th, 2023
Corporation K distributed land used in its business to its shareholders in redemption of some of its outstanding stock. At the time of the distribution, the land had an adjusted basis to K of $200,000 and a fair market value of $500,000. Corporation K must recognize how much gain?
January 15th, 2024